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112.88 (1y: +34%)
Market Cap 49.3 B P/E(ttm) 27.30
Enterprise Value 48.74 B P/B 4.00
COST- NAS (USA)
Costco Wholesale Corporation
  • Currently 5/5
Business Predictability Rank: 5-Star
Back Testing Results:
Average gain of all 5-Star stocks: 12.1% per year.
% of Stocks that are in still loss if held for 10yrs: 3%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$112.88
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry		 vs
history
Cash to Debt 3.512
COST's Cash to Debt is ranked higher than
64% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.55 vs. COST: 3.512 )
COST' s 10-Year Cash to Debt Range
Min: 0.58   Max: 5.01
Current: 3.51
0.58
5.01
Equity to Asset 0.455
COST's Equity to Asset is ranked higher than
62% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 0.34 vs. COST: 0.455 )
COST' s 10-Year Equity to Asset Range
Min: 0.44   Max: 0.54
Current: 0.46
0.44
0.54
Interest Coverage No Debt
COST's Interest Coverage is ranked higher than
76% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 41.95 vs. COST: No Debt )
COST' s 10-Year Interest Coverage Range
Min: 24   Max: No Debt
Current: No Debt
F-Score: 6
Z-Score: 6
M-Score: -2.57
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry		 vs
history
Operating margin (%) 2.80
COST's Operating margin (%) is ranked higher than
50% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 2.80 vs. COST: 2.80 )
COST' s 10-Year Operating margin (%) Range
Min: 2.5   Max: 3.2
Current: 2.8
2.5
3.2
Net-margin (%) 1.7
COST's Net-margin (%) is ranked higher than
56% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.50 vs. COST: 1.7 )
COST' s 10-Year Net-margin (%) Range
Min: 1.4   Max: 2
Current: 1.7
1.4
2
ROE (%) 13.8
COST's ROE (%) is ranked higher than
70% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 8.80 vs. COST: 13.8 )
COST' s 10-Year ROE (%) Range
Min: 10.8   Max: 14.9
Current: 13.8
10.8
14.9
ROA (%) 6.3
COST's ROA (%) is ranked higher than
69% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 3.20 vs. COST: 6.3 )
COST' s 10-Year ROA (%) Range
Min: 4.9   Max: 7.3
Current: 6.3
4.9
7.3
ROC (Joel Greenblatt) (%) 29.40
COST's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 16.00 vs. COST: 29.40 )
COST' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 18.8   Max: 29.4
Current: 29.4
18.8
29.4
Revenue Growth (%) 8.6
COST's Revenue Growth (%) is ranked higher than
94% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 3.20 vs. COST: 8.6 )
COST' s 10-Year Revenue Growth (%) Range
Min: 5.3   Max: 11
Current: 8.6
5.3
11
EBITDA Growth (%) 10.1
COST's EBITDA Growth (%) is ranked higher than
91% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 5.25 vs. COST: 10.1 )
COST' s 10-Year EBITDA Growth (%) Range
Min: 4.4   Max: 10.4
Current: 10.1
4.4
10.4
EPS Growth (%) 12
COST's EPS Growth (%) is ranked higher than
90% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 7.70 vs. COST: 12 )
COST' s 10-Year EPS Growth (%) Range
Min: 1.8   Max: 14.2
Current: 12
1.8
14.2
ยป COST's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

COST Guru Trades in Q2 2012

Louis Moore Bacon 5,625 sh (New)
Steven Cohen 947,477 sh (+3980.08%)
Ron Baron 11,395 sh (+10.91%)
Mario Gabelli 108,400 sh (+3.47%)
Jeff Auxier 12,641 sh (+2.24%)
RS Investment Management 24,430 sh (+0.53%)
Bill Gates 6,128,000 sh (unchged)
Meridian Funds 161,900 sh (unchged)
Tom Gayner 40,500 sh (unchged)
Warren Buffett 4,333,363 sh (unchged)
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Ruane Cunniff 754,937 sh (-0.11%)
Pioneer Investments 4,397 sh (-0.9%)
Tom Russo 16,855 sh (-1.17%)
PRIMECAP Management 3,327,833 sh (-2.11%)
Chris Davis 20,507,171 sh (-18.13%)
Ray Dalio 25,500 sh (-57.71%)
Jeremy Grantham 9,834 sh (-90.25%)
» More
Q3 2012

COST Guru Trades in Q3 2012

Jim Simons 1,233,413 sh (New)
Jeremy Grantham 45,157 sh (+359.19%)
Meridian Funds 161,900 sh (unchged)
Warren Buffett 4,333,363 sh (unchged)
Ron Baron 11,395 sh (unchged)
Tom Gayner 40,500 sh (unchged)
Bill Gates 6,128,000 sh (unchged)
Louis Moore Bacon Sold Out
Ruane Cunniff 752,326 sh (-0.35%)
Jeff Auxier 12,542 sh (-0.78%)
PRIMECAP Management 3,240,950 sh (-2.61%)
Mario Gabelli 105,380 sh (-2.79%)
RS Investment Management 22,230 sh (-9.01%)
Pioneer Investments 3,994 sh (-9.17%)
Chris Davis 18,089,388 sh (-11.79%)
Steven Cohen 722,758 sh (-23.72%)
Ray Dalio 12,806 sh (-49.78%)
Tom Russo 6,155 sh (-63.48%)
» More
Q4 2012

COST Guru Trades in Q4 2012

Paul Tudor Jones 3,600 sh (New)
Louis Moore Bacon 27,800 sh (New)
George Soros 400,000 sh (New)
Pioneer Investments 362,623 sh (+8979.19%)
RS Investment Management 42,130 sh (+89.52%)
Jim Simons 1,741,613 sh (+41.2%)
Ron Baron 13,228 sh (+16.09%)
Warren Buffett 4,333,363 sh (unchged)
Tom Gayner 40,500 sh (unchged)
Meridian Funds 161,900 sh (unchged)
Jeremy Grantham 534,110 sh (unchged)
Ray Dalio Sold Out
Bill Gates Sold Out
Ruane Cunniff 739,453 sh (-1.71%)
Jeff Auxier 12,243 sh (-2.38%)
Mario Gabelli 101,980 sh (-3.23%)
Tom Russo 5,855 sh (-4.87%)
Chris Davis 15,318,718 sh (-15.32%)
PRIMECAP Management 2,359,150 sh (-27.21%)
Steven Cohen 179,423 sh (-75.18%)
» More
Q1 2013

COST Guru Trades in Q1 2013

Ray Dalio 13,306 sh (New)
Jeremy Grantham 918,172 sh (+71.91%)
Paul Tudor Jones 4,200 sh (+16.67%)
Louis Moore Bacon 32,170 sh (+15.72%)
Ron Baron 14,016 sh (+5.96%)
Jeff Auxier 12,393 sh (+1.23%)
Ruane Cunniff 740,411 sh (+0.13%)
Tom Gayner 40,500 sh (unchged)
Tom Russo 5,855 sh (unchged)
Warren Buffett 4,333,363 sh (unchged)
George Soros Sold Out
Meridian Funds Sold Out
Mario Gabelli 101,800 sh (-0.18%)
RS Investment Management 41,450 sh (-1.61%)
Chris Davis 14,112,778 sh (-7.87%)
Steven Cohen 148,906 sh (-17.01%)
PRIMECAP Management 1,941,950 sh (-17.68%)
Jim Simons 1,125,213 sh (-35.39%)
Pioneer Investments 3,247 sh (-99.1%)
» More
» Details

Insider Trades

Latest Guru Trades with COST

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Meridian Funds 2013-03-31 Sold Out 0.63%$98.73 - $106.64 $ 113.3811%0
George Soros 2013-03-31 Sold Out 0.47%$98.73 - $106.64 $ 113.3811%0
Ray Dalio 2013-03-31 New Buy0.01%$98.73 - $106.64 $ 113.3811%13306
George Soros 2012-12-31 New Buy0.47%$94.47 - $105.95 $ 113.3815%400000
PRIMECAP Management 2012-12-31 Reduce -27.21%0.14%$94.47 - $105.95 $ 113.3815%2359150
Ray Dalio 2012-12-31 Sold Out 0.02%$94.47 - $105.95 $ 113.3815%0
Ray Dalio 2012-09-30 Reduce -49.78%0.02%$93.66 - $102.67 $ 113.3817%12806
Ray Dalio 2012-06-30 Reduce -57.71%0.05%$82.45 - $94.33 $ 113.3830%25500
Meridian Funds 2012-03-31 Reduce -25.08%0.15%$79.01 - $91.52 $ 113.3844%161900
Ray Dalio 2012-03-31 Add 36.42%0.02%$79.01 - $91.52 $ 113.3844%60301
Ray Dalio 2011-12-31 Reduce -67.9%0.12%$79.02 - $87.47 $ 113.3836%44201
Ron Baron 2011-12-31 Reduce -81.41%0.03%$79.02 - $87.47 $ 113.3836%10274
Dodge & Cox 2011-12-31 Sold Out 0.0003%$79.02 - $87.47 $ 113.3836%0
Ray Dalio 2011-09-30 Reduce -56.62%0.21%$70.39 - $85.07 $ 113.3843%137701
Meridian Funds 2011-09-30 Reduce -23.21%0.17%$70.39 - $85.07 $ 113.3843%238600
Jean-Marie Eveillard 2011-09-30 Sold Out 0.0658%$70.39 - $85.07 $ 113.3843%0
Ron Baron 2011-09-30 Add 28.64%0.01%$70.39 - $85.07 $ 113.3843%55274
Jean-Marie Eveillard 2011-06-30 Reduce -86.59%0.42%$74.17 - $83.86 $ 113.3842%175000
Dodge & Cox 2011-06-30 New Buy$74.17 - $83.86 $ 113.3842%2700
Mario Gabelli 2011-03-31 Reduce -76.39%0.23%$69.76 - $75.43 $ 113.3856%129915
Ron Baron 2011-03-31 Reduce -61.5%0.03%$69.76 - $75.43 $ 113.3856%44169
George Soros 2011-03-31 Sold Out $69.76 - $75.43 $ 113.3856%0
George Soros 2010-12-31 Add 45.1%$62.21 - $72.85 $ 113.3870%7400
Jean-Marie Eveillard 2010-09-30 Reduce -29.73%0.22%$53.61 - $65 $ 113.3897%1295559
Ron Baron 2010-06-30 Add 26.56%0.01%$55.63 - $61.74 $ 113.3894%139900
PRIMECAP Management 2010-03-31 Reduce -29.76%0.17%$57.07 - $61.65 $ 113.3890%5989281
Warren Buffett 2010-03-31 Reduce -17.52%0.09%$57.07 - $61.65 $ 113.3890%4333363
Tom Gayner 2010-03-31 Add 77.35%0.06%$57.07 - $61.65 $ 113.3890%34850
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Costco Wholesale Corporation

Weekly Top Insider Sells: DG, COST, RRC, and IRM
October 22, 2012
According to GuruFocus Insider Data, these are the largest insider sells during the past week. The overall trend of insiders is illustrated in the chart below: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 27.30
COST's P/E(ttm) is ranked higher than
68% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 16.24 vs. COST: 27.30 )
COST' s 10-Year P/E(ttm) Range
Min: 14.33   Max: 44.56
Current: 27.3
14.33
44.56
P/B 4.00
COST's P/B is ranked lower than
79% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.51 vs. COST: 4.00 )
COST' s 10-Year P/B Range
Min: 1.88   Max: 6.48
Current: 4
1.88
6.48
P/S 0.50
COST's P/S is ranked lower than
57% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 0.30 vs. COST: 0.50 )
COST' s 10-Year P/S Range
Min: 0.24   Max: 0.86
Current: 0.5
0.24
0.86
PFCF 26.50
COST's PFCF is ranked lower than
65% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 14.04 vs. COST: 26.50 )
COST' s 10-Year PFCF Range
Min: 12.21   Max: 1650
Current: 26.5
12.21
1650
EV-to-EBIT 16.9
COST's EV-to-EBIT is ranked higher than
73% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 11.60 vs. COST: 16.9 )
COST' s 10-Year EV-to-EBIT Range
Min: 8.6   Max: 27.4
Current: 16.9
8.6
27.4
PEG 2.7
COST's PEG is ranked higher than
90% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.20 vs. COST: 2.7 )
COST' s 10-Year PEG Range
Min: 1.32   Max: 3.16
Current: 2.7
1.32
3.16
Shiller P/E 35.4
COST's Shiller P/E is ranked higher than
79% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 14.98 vs. COST: 35.4 )
COST' s 10-Year Shiller P/E Range
Min: 16.24   Max: 35.54
Current: 35.4
16.24
35.54

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.00
COST's Dividend Yield is ranked lower than
57% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.82 vs. COST: 1.00 )
COST' s 10-Year Dividend Yield Range
Min: 0.24   Max: 1.64
Current: 1
0.24
1.64
Dividend Payout 0.3
COST's Dividend Payout is ranked higher than
83% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 0.52 vs. COST: 0.3 )
COST' s 10-Year Dividend Payout Range
Min: 0.11   Max: 0.28
Current: 0.3
0.11
0.28
Dividend growth (3y) 10.9
COST's Dividend growth (3y) is ranked higher than
94% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 5.70 vs. COST: 10.9 )
COST' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 28.8
Current: 10.9
0
28.8
Yield on cost (5-Year) 1.93
COST's Yield on cost (5-Year) is ranked higher than
66% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.91 vs. COST: 1.93 )
COST' s 10-Year Yield on cost (5-Year) Range
Min: 0.46   Max: 3.17
Current: 1.93
0.46
3.17
Share Buyback Rate 0.1
COST's Share Buyback Rate is ranked lower than
78% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: -0.30 vs. COST: 0.1 )
COST' s 10-Year Share Buyback Rate Range
Min: 2.5   Max: -1.2
Current: 0.1

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 11.5
COST's Price/Net Current Asset Value is ranked higher than
90% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 4.75 vs. COST: 11.5 )
COST' s 10-Year Price/Net Current Asset Value Range
Min: 6.8   Max: 12
Current: 11.5
6.8
12
Price/Tangible Book 4
COST's Price/Tangible Book is ranked higher than
87% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 2.10 vs. COST: 4 )
COST' s 10-Year Price/Tangible Book Range
Min: 2.2   Max: 3.9
Current: 4
2.2
3.9
Price/DCF (Projected) 2
COST's Price/DCF (Projected) is ranked higher than
96% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 0.95 vs. COST: 2 )
COST' s 10-Year Price/DCF (Projected) Range
Min: 1.2   Max: 2.4
Current: 2
1.2
2.4
Price/Median PS Value 1.2
COST's Price/Median PS Value is ranked higher than
87% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 0.95 vs. COST: 1.2 )
COST' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.2
Current: 1.2
0.7
1.2
Price/Peter Lynch Fair Value 2.8
COST's Price/Peter Lynch Fair Value is ranked higher than
99% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.45 vs. COST: 2.8 )
COST' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2   Max: 2.7
Current: 2.8
2
2.7
Price/Graham Number 2.2
COST's Price/Graham Number is ranked higher than
90% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 1.45 vs. COST: 2.2 )
COST' s 10-Year Price/Graham Number Range
Min: 1.4   Max: 2.2
Current: 2.2
1.4
2.2
Earnings Yield (Greenblatt) 5.90
COST's Earnings Yield (Greenblatt) is ranked higher than
79% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 9.30 vs. COST: 5.90 )
COST' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.7   Max: 11.6
Current: 5.9
3.7
11.6
Forward Rate of Return (Yacktman) 12.45
COST's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 218 Companies
in the Global Discount Stores industry.

( Industry Median: 10.33 vs. COST: 12.45 )
COST' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 7.7   Max: 15.5
Current: 12.45
7.7
15.5

Business Description

Costco Wholesale Corporation and its subsidiaries began operations in 1983 in Seattle, Washington. In October 1993, it merged with The Price Company, which had pioneered the membership warehouse concept, to form Price/Costco, Inc., a Delaware corporation. In January 1997, after the spin-off of most of its non-warehouse assets to Price Enterprises, Inc., it changed its name to Costco Companies, Inc. On August 30, 1999, it reincorporated from Delaware to Washington and changed its name to Costco Wholesale Corporation. The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the United States, Canada, the United Kingdom, Japan, Australia, through majority-owned subsidiaries in Taiwan and Korea, and a 50% owned joint venture in Mexico (Mexico). The Company operates membership warehouses based on the concept that offering its members low prices on a limited selection of nationally branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self-service warehouse facilities, enables it to operate profitably at significantly lower gross margins than traditional wholesalers, mass merchandisers, supermarkets, and supercenters. The Company buys the majority of its merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. The Company's depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than twenty-four hours. This maximizes freight volume and handling efficiencies, eliminating many of the costs associated with traditional multiple-step distribution channels. Such traditional steps include purchasing from distributors as opposed to manufacturers, use of central receiving, storing and distributing warehouses, and storage of merchandise in locations off the sales floor. The Company's typical warehouse format averages approximately 143,000 square feet; newer units tend to be slightly larger. Floor plans are designed for economy and efficiency in the use of selling space, the handling of merchandise, and the control of inventory. The Company's warehouses generally operate on a seven-day, 69-hour week, open weekdays between 10:00 a.m. and 8:30 p.m., with earlier weekend closing hours. The Company's strategy is to provide its members with a broad range of high quality merchandise at prices consistently lower than they can obtain elsewhere. The Company seeks to limit specific items in each product line to fast-selling models, sizes, and colors. Therefore, it carries an average of approximately 3,300 to 3,800 active stock keeping units (SKUs) per warehouse in its core warehouse business, as opposed
Company Website
SEC Reports
Industry: Discount Stores
Compare:WMT, WMMVY, DG, FDO, DLTR
Traded in other countries:CTO.Germany
ยป More Articles for COST

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